Legal Question in Civil Litigation in Virginia

Diversity Jurisdiction

If one sues an out of state insurance company in state ct. for declaratory relief only; can the insurance company remove the case to federal ct. under divesity jurisdiction theory when there is no amount in contoversy?


Asked on 2/17/01, 8:07 am

2 Answers from Attorneys

Bruce Marshall Durrette, Irvin & Bradshaw, P.L.C.

Re: Diversity Jurisdiction

Not unless there is some federal question in issue. Assuming that a petition for removal has been filed look at the jurisdictional basis that is being claimed. For example is the insurance company saying that the ultimate amount in contraversy exceed the jurisdictional threshold.

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Answered on 4/02/01, 9:47 am
Daniel Hawes Hawes & Associates

Re: Diversity Jurisdiction

Not on those facts alone, even if there's an arbitration clause in the contract. If there's a basis for federal question jurisdiction, then the answer's different. See:

M.C. Const. Corp. v. Gray Co., 17 F. Supp. 2d 541 (W.D. Va. 1998)

Cook v.Georgetown Steel Corp., 770 F.2d 1272

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Answered on 4/02/01, 5:04 pm


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